Fewer home sellers are reducing their prices in Las Vegas, Los Angeles and Detroit, a sign that some depressed housing markets are beginning to see stabilization in pricing, an online real estate search site reported.
One-fifth of Las Vegas homes experienced at least one price reduction while on the market, compared with 30 percent a month ago, San Francisco-based real estate search company Trulia.com found in its July survey.
That drops Las Vegas from No. 2 to No. 44 on Trulia’s list. Detroit, which topped the list a month ago, fell to No. 50 with 17 percent of homes reduced in price.
Nationally, nearly one-fourth of current homes on the market had price cuts, a total of $27.1 billion in reductions, Trulia reported.
Two of the hardest-hit housing markets — Las Vegas and Los Angeles — posted the biggest improvement among major metropolitan areas. Las Vegas’ number of home-price reductions dropped by one-third and Los Angeles’ number of home-price reductions dropped by one-fourth.
"You’re talking about a 33 percent drop in price reductions, so we’re seeing some positive news there," Trulia spokesman Ken Shuman said. "You’re still second-highest for the amount of price people actually chop off, but people are being more realistic about what their home is worth and pricing it right the first time around."
The average price cut in Las Vegas was 16 percent, higher than the 10.4 percent national average, and the total reduction amount was nearly $158 million. Sellers dropped their prices by 21 percent In Detroit, 15 percent in Miami and 13 percent in New York.
Four new cities made the top 10 for greatest percentage of listings with price reductions. They are Milwaukee; Chicago; New York; and Raleigh, N.C.
Providing homebuyers with access to price reduction data will help them be better informed and will help them get the most home for their dollar, Shuman said. It also helps sellers price their homes competitively as more units come onto the market.
Realtors in Las Vegas are seeing multiple bids on low-priced homes, especially foreclosures.
Shuman said that’s also happening in California. He’d heard of a home in Orange County getting 163 offers and one in Laguna Beach getting 75 bids.
"So I think the strategy of pricing low and letting it get bid up is better than letting it sit there," he said.
Contact reporter Hubble Smith at firstname.lastname@example.org or 702-383-0491.